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Environmental Services
Background Information:
Canada's environmental services sector represents an important segment of Canada's services economy. Canada's environmental services industry numbered over 3,500 firms in 2001. Business firms in the industry range from one-person operations to large, multinational corporations. Small- and medium-sized enterprises (SMEs), firms with less than 500 employees, form a vital part of the industry. In 2001, SMEs accounted for 99.5% of environment services industry firms and made up the largest share of environmental services revenues.
Some of the most promising opportunities for Canadian environmental services firms can be found in international markets. Canada's environmental services exports totalled $292 million in 2002. Canadian firms have gained international recognition for their innovative and customized solutions. Specific Canadian expertise exists in a number of areas including: climate change and clean energy technologies; waste water technologies; solid/hazardous waste management; engineering and environmental consulting; air pollution control; geomatics; and laboratory and analytical services.
Across Canada, the environmental industry (goods and services) is broadly represented with firms often located near natural resource industries or industrial markets served by these industries:
| Ontario |
32% of total environmental firms in Canada |
| Western Provinces |
30% |
| Quebec |
25% |
| Atlantic Provinces |
12% |
| Territories |
1% |
In 2000, the largest exporters of environmental goods and services included Ontario and British Columbia, followed respectively by Quebec, Alberta, New Brunswick, Nova Scotia, Newfoundland, Saskatchewan, Manitoba, and Prince Edward Island. Definition of sector in the GATS
The classification system that is used in the GATS by most WTO members divides Environmental Services into the following four categories:
- Sewage services
- Refuse disposal services
- Sanitation and similar services
- Other environmental services*
What We Heard in Previous Consultations:
Priority Markets:
The largest market for Canadian exports of environmental services is the United States, however promising opportunities for Canadian environmental services firms exist in South America, especially Chile, Argentina and Brazil, where a number of large projects financed by international financial institutions (IFIs) are being initiated. A number of Canadian firms have also been attracted by the growing demands of Asian countries for environmental services, including China, Korea, Taiwan, Indonesia, Malaysia, Singapore, Thailand and India. Finally, Canadian companies have actively pursued market access interests in a number of Central European and African countries including Poland, the Czech Republic, the Slovak Republic, Algeria, Senegal and South Africa where market demand for Canadian knowledge and expertise in the area of environmental services is growing. The highest export growth for Canadian environmental services firms currently exists in Africa and Central America.
Market Access Barriers:
Obstacles to trade identified in past consultations have included the following:
- Lack of transparency regarding rules/regulation;
- Limitations on investment/establishment;
- Unfair licensing requirements;
- Government procurement restrictions;
- Restrictions on entry and stay of managers, professionals and experts;
- SMEs: Lack of resources needed to work with multilateral institutions
The cost of maintaining such barriers in the environmental service sector can have a significant impact on costs and the variety of services which can be provided to consumers, and can act as a disincentive for the global diffusion of environmental technology, skills and expertise.
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*Note: Other Environmental Services can include: Cleaning of Exhaust Gases; Noise Abatement Services; Nature and Landscape Protection Services; and Other Environment Services not elsewhere classified.
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